Crashing Corruption

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Corruption has raised its head again…but some of it is being won back by the authorities who are, perhaps, worried about stimulus funds being misappropriated – and the associated economic losses, as well as social disharmony (Corruption: China reclaims $4 billion of embezzled public money http://bit.ly/F0PkS). Reuters:

    “China has recovered 26.77 billion yuan ($3.92 billion) of public money that was embezzled last year, the country’s top audit official said in a report…”

Some funds are also being lost by the banks, who may have thought that in the midst of so much lending, something might be allowed to fall through the gaps – as indeed it still might (More to come in 09? RT @caijingonline: China Audit Finds Irregularities in 36 Bln Yuan Worth of Bank Loans http://t.caijing.com.cn/CBgwpw). Caijing:

    “The state auditor said in a statement on its Web site on June 24 that the six banks, including the big four listed lenders – Industrial and Commercial Bank of China, Bank of China, China Construction Bank and Bank of Communications – improperly lent a combined 21.5 billion yuan in land reserve and mortgage loans, or extended loans to unqualified property developers.

    …The banks, which also include Citic Bank and China Merchants Bank, lent another 10.7 billion yuan to projects that had not won regulatory approval.

    …There were also 4.4 billion yuan worth of loans misused because of the banks’ lack of post-lending supervision, the NAO said.

    Plenty of people are unhappy about such practices, and public anger, released online, led to the crash of the official, anti-corruption web site (No need to “Green Dam” it then! RT @sinostream: http://xi.gs/05QJ China corruption website crashes).

    It might expect a few more hits…

One Response to “Crashing Corruption”

  1. Archive » Briefly…Top Ten Tweets (From Obamao, Experts & Oxymorons To Emerged Economies, Consumer Wealth & A Blushing Barbie)| China Business Blog Says:

    […] fallout. Long-term access to international resources will require a careful approach from China. Anti-corruption efforts are ongoing, but more needs to be […]

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